More African countries are getting serious about CBDCs and crypto adoption.
From banning cryptocurrency procurement to disabling BVN access to exchanges and even blocking one of cryptocurrency‘s most vibrant social communities, the Nigerian government has hence shown little advocacy for cryptocurrencies. This only heightens the perplexity among locals as the country now joins in on the crypto bandwagon.
Major updates
- Nigeria adopts CBDCs to ease remittance and remain updated on global trends.
- Nigeria’s first-ever CBDC will debut before the end of the year.
- Ghana, South Africa, and Tanzania to adopt CBDCs.
- Tanzanian president, Samia Suluhu Hassan urges the country's central bank to prepare for the global adoption of cryptocurrency.
Nigeria's CBDC is moving forward
It has recently been reported that Nigeria, despite a past of anti-crypto regulations, will be issuing its first-ever Central Bank Digital Currency very soon. Till now, the date of its launch is unknown, but according to IT Director Rakiya Mohammed, the token will be available before the end of the year.
The news was announced at a Bankers Committee meeting, and it was stated that the launch would follow after an essential testing phase is carried out on the Nigerian population.
The new digital currency is not aimed at replacing the local naira but rather to act as a complementary payment option for Nigerians. It was also designed to ease foreign remittance. This is due to the lack of foreign exchange and other third-party charges, making it a more affordable option.
The situation is similar to that of China as they develop the digital Yuan while crippling the local crypto community.
Another reason for the CBDC launch is explained as follows; as many other global nations get to work on CBDCs, Nigeria does not want to be left out of the trend.
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Many other African nations too are already making steps towards CBDC developments. Tanzania for example; President Samia Suluhu had requested the country's financial sector to look into the concept of CBDCs.
Tanzania’s Call for wider crypto adoption
Tanzania's president has asked the country's central bank to prepare for the global adoption of cryptocurrencies.
During an address on Sunday, President Samia Suluhu Hassan stated the Bank of Tanzania should "be ready for developments and not caught off guard."
"I know that throughout the country... they have not embraced or begun to use these routes. However, my recommendation to the central bank is that you begin working on that development right now "She said.
Her remark came after El Salvador adopted bitcoin (BTC, -1.18 percent ) as legal currency.
Other nations that see crypto as a way to promote economic growth and stabilize financial instability will be the focus of attention.
Conclusion
Ghana also has been working On the nation’s digital cedi. It is currently in the process of getting its official launch, furthermore, implementation. South Africa also has plans to implement CBDCs. The SARB is to launch a CBDC in 2022, although a feasibility study is underway.
Question of the day
What do you think about the Nigerian Central Bank releasing its digital currency?
